Gatsby Starter Blog


April 25, 2020

  • Solow swan growth model
  • Rise and fall of american growth
  • Solow’s residual

labor (education)

  • L * e physical capital
  • K

ideas / Technology

  • A

Production function -> GDP

Holding everything else constant:

Y = F(K)

eg sqrt K

more capital, diminishing returns

marginal product of capital, inc in Y for increase in K

capital rusts -> depreciates

depreciation constant rate to capital

investment = 0.3 * output savings and investment, new capital is savings from output

steady state, investement === depreciation steady state level of capital, steady state output

e - diminishing returns

conditional convergence (institutions and other countries)

! under construction !